CBN Injects $210m Into Inter-bank FOREX Market

CBN Injects $210m Into Inter-bank FOREX Market

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Post Views: 421 As part of its determination to ensure availability of foreign exchange to genuine customers, the Central Bank of Nigeria (CBN), on We...

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As part of its determination to ensure availability of foreign exchange to genuine customers, the Central Bank of Nigeria (CBN), on Wednesday, May 30, 2018, again supplied a total of $210m to the nation’s inter-bank Foreign Exchange market.
A breakdown of the figure, according to CBN’s Acting Director, Corporate Communications Department, Mr. Isaac Okorafor, said while the sum of $100m to authorized dealers in the wholesale segment of the market, operators in the Small and Medium Enterprises (SMEs) segment received the sum of $55m.
Another $55m was apportioned to invisibles such as tuition fees, medical payments and Basic Travel Allowance (BTA).
Okorafor reminded Deposit Money Banks (DMBs) to continue complying with the CBN’s directive to sell forex over the counter to customers with legitimate needs so as to sustain the confidence in the foreign exchange market.
It will be recalled that the CBN had recently ordered banks not to deny genuine travelers Personal Travel Allowance (PTA) and Business Travel Allowance (BTA), assuring that there are enough dollar supplies to meet the demand.
This was followed by the CBN Governor, Godwin Emefiele leading Bank Examiners to conduct on-the-spot assessment of forex sales in the DMBs on Monday, May 28, 2018.
Recall that the CBN, on Sunday night directed all licenced Bureaux De Change (BDCs) to access its windows thrice weekly.
Such BDCs, Okorafor said, must henceforth be at the apex bank’s FX window compulsorily on Mondays, Wednesdays and Fridays.
“Any BDC that fails to access the forex window at least three times weekly shall have its licence reviewed by the CBN,” Okorafor added, as if to signal the level of seriousness of the order.
Also, as part of ensuring that eligible travelers obtain foreign exchange from the market with relative ease, the CBN also mandated deposit money banks in the country to buy and sell FX to travelers, whether customers or not.
Such customers are however to present “relevant, valid travel documents such as visa and ticket OVER THE COUNTER.
“All travelers shall be attended to immediately at the banks’ counters,” Okorafor added, warning that “any contravention shall be sanctioned by the CBN.”
Meanwhile, the Naira, on Wednesday, May 30, 2018, exchanged at an average of N363/$1 in the BDC segment of the market.

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